Can your company pay for home charging?
For a company electric car, your company can pay for all its home charging tax-free, private miles too. In your own car it can't. See the figures for your miles, and the tax on a home charge point.
Your answer
Choose whose car it is and enter your business miles to see what your company can pay tax-free.
About this calculator
For directors and employees who drive a fully electric car and charge it at home, and for companies deciding how to pay for it.
What happens to your answers
We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.
How it’s worked out
Electricity isn't a fuel for company car tax, so charging a company car never adds a fuel benefit. If the company pays you back for the electricity to charge a company car at home, there's no tax or National Insurance, for business and private miles, as long as it only pays for the car's electricity. HMRC's advisory electricity rate (7p a mile for home charging) is a safe rate for business miles. A higher rate is fine if you can show the real cost is higher.
For your own car, the advisory rate can't be used. The company can pay the approved mileage rates for business miles tax-free, but paying for private charging is taxed as pay. A home charge point is tax-free for a company car and a taxable benefit for your own car.
We work out the real cost a mile from your electricity price and the car's miles per kWh, and show the tax-free amount, what would be taxed and the tax on a charge point. The company can deduct a charge point's cost from its profits. If it owns a new charge point bought by 31 March 2027, it gets the 100% first-year allowance.
Worked example
Your company can pay you £560 a year tax-free for your 8,000 business miles, at HMRC's 7p a mile.
Company car · fully electric · 26.3p a kWh · 3.59 miles a kWh · all charging at home
| 8,000 business miles at 7p a mile, HMRC's advisory electricity rate for charging at home from 1 September 2026 | £560 |
|---|---|
| Home charging really costs 26.3p a kWh ÷ 3.59 miles a kWh = 7.3p a mile | 7.3p |
| Electricity for all 12,000 miles at 7.3p a mile | £880 |
| Paying for the 4,000 private miles' charging: no tax for a company car | £0 |
| Home charge point for a company car: no taxable benefit | £0 |
| Corporation Tax the company saves by deducting the £1,000 cost, if it owns the charge point (19% to 26.5%, depending on its profits) | £190 to £265 |
Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027), on a yearly basis.
Questions people ask
Can my company just pay my home electricity bill?
Not tax-free. The exemption only covers the electricity used to charge a company car. Paying your household bill is taxed as pay. A separate meter or the charger's app shows how much the car used.
Does this work for a plug-in hybrid?
The advisory electricity rate is for fully electric cars only. Plug-in hybrids use HMRC's petrol or diesel advisory fuel rates for business miles. Talk to us if your company pays for a hybrid's charging.
Is charging at work taxed?
No. Free charging at work is tax-free for company cars, and for employees' own cars if it's open to all staff at that workplace.
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